Anglo American sells Australia coal business in $3.9bn restructuring deal

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Anglo sells Australia coal business

Highlights

Anglo American sells its Australian steelmaking coal assets to Dhilmar for a headline price of $3.9bn, with $2.3bn upfront and $1.6bn in price-linked payments through 2032.
Aggregate proceeds could reach $4.9bn if all coal price-linked payments and the earlier $1bn Jellinbah sale are realized, with the transaction expected to complete by Q1 2027.
Anglo shares drop 1.46 per cent to £37.77 on news of the deal but remain up 86 per cent over the past year, as restructuring continues ahead of a planned merger with Teck Resources.

Sale terms and restructuring timeline

As reported by Financial Times, the agreement announced on Monday gives Anglo a new buyer for the steelmaking coal assets after Peabody withdrew from a previous $3.8bn deal. Anglo says the new transaction marks a further step in its restructuring programme before its planned combination with Canada's Teck Resources later this year.

The deal with Dhilmar includes $2.3bn payable upfront on completion, which Anglo plans to use to reduce net debt. A further $1.6bn is due over five years as a share of mine revenues if the benchmark price for metallurgical coal stays above $259 a tonne.

Anglo says the sale is expected to complete by the first quarter of 2027. Chief executive Duncan Wanblad says the agreement is another major step in simplifying the group's portfolio, and aggregate cash proceeds could reach as much as $4.9bn if the coal price-linked payment is made in full and including the earlier sale of its stake in the Jellinbah mine for about $1bn.

Deal fallout and market implications

Peabody had agreed to buy the Australian coal business but pulled out in August after arguing that a fire at the Moranbah North mine in March 2025 amounted to a material adverse condition. Anglo disputes that position, and the two sides are pursuing arbitration over the failed transaction.

Anglo launched its reorganisation in 2024 as it sought to fend off a hostile £39bn bid from BHP, putting its coal, nickel, platinum and diamond businesses up for sale. The nickel and platinum disposals have already been completed, while Anglo is in advanced discussions to sell its 85 per cent stake in De Beers to a consortium of buyers.

Analyst Richard Hatch of Berenberg says the valuation is positive for Anglo and slightly above expectations, adding that the market is likely to be encouraged by the price. Anglo shares fall 1.46 per cent to £37.77 on Monday but remain up 86 per cent over the past year, while Dhilmar, incorporated in London in 2024, is a little-known buyer whose owners include Indonesian mining executive Alexander Ramlie according to Companies House records.

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